Literal Equations: Rearranging Formulas

April 12, 2026

Problem

Rearrange A = P(1 + rt) to solve for r. Show each algebraic step on a balance scale.

Explanation

What is a literal equation?

A literal equation contains multiple variables (letters). Solving for one variable means isolating it on one side — the same inverse-operation process as solving a regular equation, but the answer contains other variables instead of numbers.

Step-by-step solution: solve A=P(1+rt)A = P(1 + rt) for rr

Step 1 — Divide both sides by PP to undo the multiplication:

AP=1+rt\frac{A}{P} = 1 + rt

Step 2 — Subtract 1 from both sides to isolate the term with rr:

AP1=rt\frac{A}{P} - 1 = rt

Step 3 — Divide both sides by tt to isolate rr:

r=A/P1t=APPtr = \frac{A/P - 1}{t} = \frac{A - P}{Pt}

Check: Substitute back: P(1+APPtt)=P(1+APP)=PAP=AP(1 + \frac{A-P}{Pt} \cdot t) = P(1 + \frac{A-P}{P}) = P \cdot \frac{A}{P} = A

The key principle

The same inverse operations you use for 3x+7=223x + 7 = 22 apply here — just treat every other variable as if it were a number.

Common mistakes

  • Forgetting to distribute. In A=P+PrtA = P + Prt, students sometimes divide only part by PP.
  • Wrong order of operations. Undo addition/subtraction before multiplication/division.

Try it in the visualization

Select from several common formulas. Each step is shown on a balance scale metaphor. Plug in test values to verify.

Interactive Visualization

Parameters

A = P(1+rt) → solve for r
500.00
400.00
5.00
Final
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Literal Equations: Rearranging Formulas | MathSpin